Gold Price News: Gold Hits Fresh Highs Ahead of US Data

Gold prices rose further on Tuesday, reaching another all-time high amid safe-haven interest and ahead of key US economic data on GDP growth and inflation.

Prices notched up an intraday high of $2,773 an ounce on Tuesday, another all-time high. That compares with around $2,743 an ounce in late trades on Monday. Prices rose further to $2,790 an ounce going into Wednesday’s session.

Safe havens continue to attract buyers

The gains for gold came as safe haven assets continued to attract investors, amid a backdrop of uncertainties over the outcome of the upcoming US election on November 5 and worries over a potential escalation of the Russia/Ukraine war.

NATO on Monday for the first time said North Korean troops have been deployed to Russia and are operating in the Kursk border region. While the numbers are small compared with Russia’s total forces, the presence of troops in the region from another nuclear-armed power represents a dangerous escalation of the situation, western leaders said this week.

Gold’s gains came despite moderately higher US treasury yields and a stronger US dollar on Tuesday.

US jobs figures come in below expectations

The US JOLTs job openings data for September released on Tuesday came in at 7.44 million – somewhat below market expectations of 7.99 million. Signs of a weaker US labour market could increase pressure on the US Fed to pursue a more dovish stance on monetary policy. As it stands, the markets widely expect the US Fed to slash rates by 25 basis points at its next meeting on November 7.

Technical levels

On the technical charts, gold’s continued ascent means it is very close to testing oblique minor resistance at $2,784 an ounce. This represents the upper boundary of a rising trend channel in place since late July. By the same token, this channel indicates oblique major support at $2,668 an ounce. With the 14-day Relative Strength Index coming in at around 73 on Tuesday, gold’s recent gains could be taken as a sign that the metal is moving into overbought territory. That said, further gains are possible if gold’s bullish factors continue – notably ongoing economic and political uncertainty, safe haven interest and further interest rate cuts by central banks.

Upcoming data to keep an eye on

Wednesday is ‘GDP day’ with a flurry of Q3 economic growth figures due for release from major economies including France, Spain, Germany, Italy, the Euro Area, Mexico and the US. Beyond that, the markets will be watching out for US core PCE price index figures on Thursday – the US Fed’s preferred gauge of inflation – for any clues about interest rate cuts for the remainder of the year.